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DATE=7/30/1999 TYPE=CORRESPONDENT REPORT TITLE=INDIA IRAQ U-N (L) NUMBER=2-252336 BYLINE=JIM TEEPLE DATELINE=NEW DELHI CONTENT= VOICED AT: INTRO: India says it has no intention of breaking U-N sanctions on Iraq and will only extend credit to Baghdad if the United Nations approves. U-N diplomats had questioned statements made in the Iraqi capital by India's Oil Minister which appeared to indicate India was going ahead with loans to Iraq, in violation of sanctions on Baghdad which have been in effect since the end of the Gulf War. V-O-A's Jim Teeple has more from our New Delhi bureau. Text: India's Foreign Ministry has given an emphatic denial to reports India was planning to break U-N sanctions with a 25-million dollar credit to Baghdad, as well as separate deals to exploit Iraq's vast oil reserves and sell an Iraqi company one-thousand buses. India says it will extend a 25-million dollar credit to Baghdad for humanitarian purposes, but only if the loan is approved by the U-N committee which monitors compliance with sanctions on Iraq. Raminder Jassal, the chief spokesman for India's Foreign Ministry says India has no intention of breaking sanctions. /// Jassal act /// While we remain concerned at the suffering of the Iraqi people, we strictly adhere to all relevant U-N resolutions regarding Iraq. /// end act /// Mr. Jassal says India's Oil Minister was misquoted in Baghdad when he reportedly said India would go ahead with plans to offer loans to Iraq to purchase one- thousand buses manufactured by an Indian company. In recent days India and Iraq have reportedly reached agreement on several major oil exploration deals, but India's Foreign Ministry says any such agreements will also be subject to U-N resolutions on Iraq. /// rest opt /// Russia and China have called for sanctions on Iraq to be suspended once a new disarmament monitoring system is put in place. The United States supports a British-Dutch initiative, which would replace the oil- embargo with import controls if Iraq agrees to cooperate with U-N weapons inspectors. (Signed) NEB/JLT/RAE 30-Jul-1999 09:16 AM LOC (30-Jul-1999 1316 UTC) NNNN Source: Voice of America .